Vale Gets BRL7.3bn BNDES Credit

Brazil’s BNDES national development bank has agreed to provide Vale a 5-year credit line of up to BRL7.3bn. The facility will help finance expansion of Vale’s production capacity in Brazil, a key part of its capital investment budget of $59bn over the next five years. The Brazilian mining giant, which last week halted talks with Xstrata for an up to $90bn takeover of the Swiss company, managed to secure a total of $71bn in commitments from banks to support the transaction if it had gone through. The staggering figure reinforces the fact that high quality corporates with strong relationships still have ready access to cash.